1. What You Need to Know About Financial Aid

2. Topics We Will Discuss Tonight O What is financial aid? O Cost of attendance (COA) O Expected family contribution (EFC) O Financial need O Categories, types, and sources of financial aid O Free Application for Federal Student Aid (FAFSA) O Special circumstances

3. What is Financial Aid? Financial aid consists of funds provided to students and families to help pay for postsecondary educational expenses

4. What is Cost of Attendance (COA)? Includes: O Tuition & Fees O Room & Board O Books, supplies, transportation, and misc. personal expenses Sometimes can include O Loan fees O Study abroad costs O Dependent care expenses COA Varies widely from college to college

5. What is Expected Family Contribution (EFC)? O Amount family can reasonably be expected to contribute O Stays the same regardless of college O Two components O Parent contribution O Student contribution O Calculated using data from a federal application form and a federal formula

6. What is Financial Need? Cost of Attendance – Expected Family Contribution = Financial Need

7. Need Varies Based on Cost

8. Categories of Financial Aid O Need-based aid O Non-need-based aid

9. Types of Financial Aid Scholarships Grants Loans Employment Gift Aid Self-Help Aid

10. Gift Aid: Scholarships/Grants O Money that does not have to be paid back O Awarded on the basis of merit, skill, or unique characteristic O Usually awarded on the basis of financial need

11. Self-Help Aid: Loans O Money students and parents borrow to help pay college expenses O Repayment usually begins after education is finished O Only borrow what is really needed O Look at loans as an investment in the future

12. Self-Help Aid: Work-Study Employment O Allows student to earn money to help pay educational costs O A paycheck; or O Nonmonetary compensation, such as room and board O Student may opt the number of hours to work

13. Sources of Financial Aid O Federal government O States O Colleges and universities O Private sources O Civic organizations and churches O Employers

14. Federal Government O Largest source of financial aid O Aid awarded primarily on the basis of financial need O Must apply each year using the FAFSA

15. States O Residency requirements usually apply O Award aid on the basis of both merit and need O Use information from the FAFSA and/or state aid applications O Deadlines vary by state O Check paper FAFSA or FAFSA on the Web site

16. State of Kansas Scholarships and Grants O Kansas Comprehensive Grant O Kansas State Scholarship O Kansas Ethnic Minority Scholarship O Career Technical Workforce Grant (formerly the Kansas Vocational Scholarship) O Kansas Career Work Study Program O Military Service Scholarship (FY 08)

17. State of Kansas Scholarships and Grants O Fee Waiver Programs O Dependents & Spouses of Deceased Public Safety Officers, and Military Personnel O Former Prisoners of War O ROTC Tuition Waiver O Kansas Teacher Service Scholarship O Kansas Nursing Service Scholarship O National Guard Educational Assistance Program

18. Private Sources O Foundations, businesses, charitable organizations O Deadlines and application procedures vary widely O Begin researching private aid sources early

19. Civic Organizations and Churches O Research what is available in community O To what organizations and churches do student and family belong? O Application process usually occurs during spring of senior year O Small scholarships add up!

20. Employers O Companies may have scholarships available to the children of employees O Companies may have educational benefits for their employees

21. Federal Student Aid Programs O Federal Pell Grant O Teacher Education Assistance for College and Higher Education (TEACH) Grant O Federal Supplemental Educational Opportunity Grant (FSEOG) O Federal Perkins Loan O Federal Work-Study (FWS) O Subsidized and Unsubsidized Federal Direct Student Loans (Direct Loans) O PLUS Loans

22. Federal Pell Grant O Awarded amount based on EFC, COA, and enrollment status (full-time, half-time, etc.) O Generally awarded to undergraduate students only, few exceptions O Maximum award for 2014-2015 = $5,730

23. TEACH Grant O U.S. citizen O Be enrolled in course work that is necessary to begin a career in teaching or plan to complete such course work. O Meet certain academic achievement requirements O Sign a TEACH Grant Agreement to Serve O Teach full time as a highly qualified teacher at a low income school in a high need field for 4 years after degree completion. O If you do not complete the required teaching service obligation, TEACH grant funds you received will be converted to a Federal Direct Unsubsidized Stafford Loan that you must repay, with interest charged from the date of each TEACH Grant disbursement.

24. FSEOG (Federal Supplemental Educational Opportunity Grant) O Annual award amounts vary between school from $100 to $4,000 a year O Students with the lowest EFC’s must be awarded first O Priority goes to Federal Pell Grant recipients

25. Federal Work Study (FWS) O Provides part-time employment while students are enrolled O Employment may be on or off campus O Even if you don’t qualify for FWS you may still be able to have an on campus job! O Inquire about jobs at your college’s Student Employment Office

26. Federal Perkins Loan O Priority to students who show exceptional need O Interest rate: 5% fixed O Nine month grace period, repayment may be up to 10 years O Deferment and cancellation provisions available for qualifying employment O Maximum annual award O $4,000 for undergraduate students O $6,000 for graduate students

27. Federal Direct Loans O Subsidized O must demonstrate need O U.S. Department of Education will pay (subsidize) the interest that accrues while in school O Unsubsidized O not based on need O most everyone can qualify

28. Direct Loans – Annual Loan Limits O Annual Loan Limits (combined subsidized and unsubsidized) Classification Dependent Independent Freshman $5,500 $9,500 Sophomore $6,500 $10,500 Each remaining year $7,500 $12,500 Graduate/Professional N/A $20,500

29. Direct Loans O The current interest rate on 2014-15 Undergraduate Direct loans (subsidized and unsubsidized) first disbursed on or after July 1, 2014 is 4.66%. Each year the interest rate will change based on the market. O Repayment begins after 6 month grace period O Maximum repayment period between 10 and 30 years

30. Plus Loans O Parents of dependent undergraduate students O Graduate/Professional students O Repayment begins immediately but can be deferred upon request O 2014-15 Direct interest rate: 7.21% (will change annually based on the market) O If a parent is unable to borrow (denied) a parent PLUS loan, a student may be eligible for additional unsubsidized loan

31. Free Application for Federal Student Aid (FAFSA) O A standard form that collects demographic and financial information about the student and family O May be filed electronically or using paper form O Available in English and Spanish

32. FAFSA O Information used to calculate the expected family contribution (EFC) O Amount of money a student and his or her family may reasonably be expected to contribute towards the cost of the student’s education for an academic year O Colleges use EFC to award financial aid

33. FAFSA O May be filed at any time during an academic year, but no earlier than the January 1 st prior to the academic year for which the student requests aid O For the 2015–16 academic year, the FAFSA may be filed beginning January 1, 2015 O Most colleges set FAFSA filing deadlines

34. FAFSA on the Web O Website: www.fafsa.govwww.fafsa.gov O 2015–16 FAFSA on the Web available on January 1, 2015 O FAFSA on the Web Worksheet: O Used as “pre-application” worksheet O Questions follow order of FAFSA on the Web

35. Why use FAFSA on the Web? O Built-in edits to prevent costly errors O Skip-logic allows student and/or parent to skip unnecessary questions O Option to use Internal Revenue Service (IRS) Data Retrieval Tool to import tax data O More timely submission of original application and any necessary corrections O More detailed instructions and “help” for common questions O Ability to check application status online O Simplified application process in the future

36. IRS Data Retrieval Tool O While completing FOTW, applicant may submit real-time request to IRS for tax data O IRS will authenticate taxpayer’s identity O If match found, IRS sends real-time results to applicant in new browser window O Applicant chooses whether or not to transfer data to FOTW

37. IRS Data Retrieval Tool O Available early February 2015 for 2015–16 processing cycle O Participation is voluntary O Reduces documents requested by financial aid office

38. IRS Data Retrieval Tool Some will be unable to use IRS DRT. Examples include: O Filed an amended tax return O No SSN was entered O Student or parent married but filed separately

39. Federal Student Aid Personal Identification Number (FSA PIN) O Website: www.pin.ed.govwww.pin.ed.gov O Sign FAFSA electronically O Not required, but speeds processing O May be used by students and parents throughout aid process, including subsequent school years

40. FAFSA PIN Changes O FSA is adopting the best practice of using a username and password instead of personal information O The FSA ID O Requires users to enter less info (2 fields instead of 4) O Provides more secure access to user’s information O Links to PIN information during registration O Offers self – service capability (name change) 4/25/15. O The FSA ID (username and password) will replace PIN for students, parents and borrowers accessing FSA systems starting on 4/25/15.

41. FAFSA PIN Changes O What happens for new user? O Registration requests same required information as PIN O New users will be directed to the registration page to create an FSA ID (username and password) similar to today’s PIN creation page O What happens if I have a PIN already? O During account creation, user will be asked for their PIN. O As long as the PIN information matches their other information, the account will be linked to the FSA ID account O Will the changes affect a user’s ability to access previous FAFSA submissions? O If the user links their PIN, they will have access to previous FAFSA submissions

42. FAFSA on the Web Worksheet 2015–16 FAFSA on the Web Worksheet contains: O Instructions O Questions that gather basic information on student and parent, if applicable

43. Login: (Student’s Info) First Name Last Name SSN Date of Birth

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45. Frequent FAFSA Errors O Social Security Numbers O Divorced/remarried parental information O Income earned by parents/stepparents O Untaxed income O U.S. income taxes paid O Household size O Number of household members in college O Real estate and investment net worth

46. FAFSA Processing Results Central Processing System (CPS) notifies student of FAFSA processing results by: O Paper Student Aid Report (SAR) if paper FAFSA was filed and student’s e-mail address was not provided O SAR Acknowledgement if filed FAFSA on the Web and student’s e-mail address was not provided

47. FAFSA Processing Results O CPS notifies student of FAFSA processing results by: O Email notification containing a direct link to student’s online SAR if student’s email was provided on paper or electronic FAFSA O Student with PIN may view SAR online at www.fafsa.gov www.fafsa.gov

48. FAFSA Processing Results O Institutional Student Information Record (ISIR) sent to colleges listed on FAFSA approximately 10 to 14 days after FAFSA is submitted O Most schools won’t begin processing aid for 2015-16 until late March or April O College reviews ISIR O May request additional documentation

49. Student Aid Report O Review data for accuracy and correct any errors O Update estimated tax information when actual figures become available

50. Making Corrections O Using FAFSA on the Web (www.fafsa.gov) if student has a PIN;www.fafsa.gov O Updating paper SAR (SAR Information Acknowledgement cannot be used to make corrections); or O Submitting documentation to college’s financial aid office

51. Special Circumstances O Cannot be documented using FAFSA O Send written explanation and documentation to financial aid office at each college O College will review and request additional information if necessary O Decisions are final and cannot be appealed to U.S. Department of Education

52. Special Circumstances O Change in employment status O Unusual medical expenses not covered by insurance O Change in parent marital status O Unusual dependent care expenses O Student cannot obtain parental information

53. CAUTION!!! O Avoid being charged a fee to file the FREE Application for Federal Student Aid O Completion and processing of the FAFSA are FREE O www.fafsa.gov www.fafsa.gov

54. Where do I go from here? O Obtain and review admissions and financial aid Web sites and materials for each school to which you are applying. O Meet all application deadlines. O Complete FAFSA and other application materials. Submit all requested follow-up documents. O Investigate other sources of aid.

55. College Goal Sunday February 22, 2015 2:00 – 4:00 pm Visit www.CollegeGoal.orgwww.CollegeGoal.org for more information 55

56. Questions?